Wednesday, May 27, 2015



Spring Surge in New-Home Sales

New-home sales climbed 6.8 percent in April reaching a seasonally adjusted annual rate of 517,000, as home prices also saw a big jump too, the Commerce Department reported Tuesday.
The New-Home Recovery
"Sales are moving forward and our builder members are telling us they are starting to see more activity as more buyers get off the fence and enter the marketplace," says Tom Woods, chairman of the National Association of Home Builders.
Inventories of new homes for sale also saw a slight increase in April to 205,000 units. This now represents a 4.8-month supply at the current sales pace – still, most economists consider a 6 month supply healthy for the sector.
NAR existing-home sales report: Home Sales Cooled Off This Spring
With tight supplies, the median price for a new home soared 8.3 percent in April compared to a year ago, now at $297,300.
“While higher home prices could reduce affordability, they boost household equity, which could boost consumer spending,” Reuters reports.
Across the country, new-home sales rose by the highest percentage in the Midwest, increasing nearly 37 percent in April month-over-month and reaching a seven-month high. New-home sales also rose nearly 6 percent in the South. However, new-home sales were down in the Northeast, falling 5.6 percent month-over-month, and falling by 2.3 percent in the West.

Sunday, May 24, 2015



Multifamily Boom Can't Last Forever

Investors should be wary about unbridled optimism regarding the apartment market, explained two prominent housing economists at an economic trends forum on commercial real estate at the 2015 REALTORS® Legislative Meetings & Trade Expo.
Sam Chandan—author, professor, and founder of Chandan Economics—said that, just in the way that investors were fooled into thinking that the housing market couldn’t fail in the run-up to the most recent recession, so too should today’s investors avoid the temptation to believe wholesale the glowing reports about rising rents and low vacancy levels in multifamily buildings.
“Investors will tell you we’re fundamentally a nation of renters now… that narrative ignores that there’s a cyclical component,” Chandan said. “As house prices begin to improve… there will be a significant subset of renters in the U.S. who will say now is the right time to be a homeowner.”
Chandan said part of the problem is thanks to the media, which is more apt to write about billion-dollar apartment acquisitions, making it easier for readers to see the multifamily market as ever expanding in terms of record-setting deals. He also noted that the belief is enticing due to the dominant—but misleading—narrative about the largest generational segment of the population. 
“Millennials will always be millennials. They will not always be in their 20s,” Chandan said. “You can ask any 22-year-old throughout modern history, ‘Do you want to own a minivan?’ And they will say no. But one day they will.”
At the same forum, National Association of REALTORS® Chief Economist Lawrence Yun addressed the issue by looking at the data. He said that under normal circumstances population growth tracks very closely with household formation, but currently the latter is lagging behind the former. He said that situation should be good news for all housing segments.
“There is a pent-up demand for household formation which can support home sales as well as an increase in the rental rate,” Yun said, noting that the supply in multifamily new construction is still insufficient to meet market needs. “If you are an apartment owner and you are concerned that people will start buying homes, you don’t need to worry too much.”
Yun noted that a growing employment rate might do the same thing for the office market, which is still well behind multifamily in terms of recovery: “They have squeezed the workers so much into these spaces… which means vacancy rates will likely decrease.”
Ultimately, Yun advised investors not to pull back, but to proceed with caution. “We do anticipate some growth activity,” he said. “You may need to be more selective, discriminating.”
Chandan agreed: “It’s not just the ability to find good deals. It’s about having the discipline to be able to walk away from deals when they don’t make sense.”
—Meg White, REALTOR® Magazine

Friday, May 22, 2015

Mortgage Rates Take a Slight Dip This Week

Average fixed-rate mortgages moved slightly lower this week, a welcome reversal following three consecutive weeks of increases.
Freddie Mac reports the following national averages with mortgage rates for the week ending May 21:
  • 30-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.7 point, dropping from last week's 3.85 percent average. Last year at this time, 30-year rates averaged 4.14 percent.
  • 15-year fixed-rate mortgages: averaged 3.05 percent, with an average 0.6 point, dropping from last week's 3.07 percent average. A year ago, 15-year rates averaged 3.25 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.88 percent, with an average 0.5 point, dropping from last week's 2.89 percent average. Last year at this time, 5-year ARMs averaged 2.96 percent.
  • 1-year ARMs: averaged 2.51 percent, with an average 0.4 point, rising from last week's 2.48 percent average. A year ago, 1-year ARMs averaged 2.43 percent.
Source: Freddie Mac

Wednesday, May 20, 2015

Buyers Growing Wary From Rate Rises?

Total mortgage applications, including both refinancing and home-purchase loans, dipped 1.5 percent last week from the week prior on a seasonally adjusted basis as mortgage rates continued to tick up, the Mortgage Bankers Association reports in its weekly mortgage market survey.
Applications for home purchases, viewed as a gauge of future homebuying activity, dropped 4 percent from the previous week to its lowest level since April. Yet, home purchase applications are still 11 percent higher than the same week one year ago.
"The drop this week may indicate borrowers being wary of the recent runup in mortgage rates," said Mike Fratantoni, MBA's chief economist.
MBA reports that the 30-year fixed-rate mortgage averaged 4.04 percent last week, its highest level since December 2014 and up from 4 percent the week prior.
"We're likely to continue to see these mortgage rate swings as market participants try to anticipate Fed timing around rising short-term interest rates," says Len Kiefer, deputy chief economist at Freddie Mac. "Unfortunately, prospective home buyers may experience bouts of affordability shock in many housing markets. So far, it's been low mortgage rates that have helped to keep home-buyer affordability strong in the face of rising house prices, while income growth remains stagnant."
Mortgage applications for refinancings have been gradually falling over the past few weeks as rates have risen. Last week, applications for home refinances stayed basically flat, up just 0.3 percent for the week.
Source: “Weekly Mortgage Applications Drop 1.5% as Rates Rise,” CNBC (May 20, 2015)

Tuesday, May 19, 2015

It's Becoming Easier to Get a Mortgage

Lenders are showing signs of loosening up when it comes to home buyers seeking a mortgage. The Mortgage Bankers Association's Mortgage Credit Availability Index ticked up slight in April, following an increase the previous month too. Increases in the index are indicative of an overall loosening of credit.
Opening the Credit Box
MBA's index shows that mortgage credit availability has increased consistently over the last several months, coinciding with recent announcements from the federal government of programs that have been designed to open the credit box. Fannie Mae and Freddie Mac's move to back 3 percent down payment loans as well as the Federal Housing Administration’s action to reduce its mortgage insurance premiums have helped ease credit, MBA Chief Mike Fratantoni says.
Other government offerings also helped to ease credit even more in the latest report, reflecting April data, MBA notes.
"Mortgage credit availability increased on net in April," Fratantoni says. "The increase was driven by new offerings of FHA's 203K home improvement program, new VA offerings, and new jumbo products. The increase was partially offset by some investors tightening underwriting criteria on conventional cash out offerings."
REALTORS® surveyed have pinpointed tight credit conditions, significant lender overlays, and loan processing delay as a major hurdle facing their buyers the past few years, but REALTORS® are also reporting gradual improvements, according to the latest REALTORS® Confidence Index, a survey of real estate professionals.
REALTORS® point to the trend of lenders showing more willingness to accept slightly lower FICO scores – moving from the high range of 740-plus to now the mid-range of 620-740. Also, REALTORS® note an increase in the number of their clients securing a loan while making zero to 6 percent down payments. FHA's reduction in the mortgage insurance premium and the GSE-backed 3 percent down payment loans are helping buyers to come with less money to the table.
But while mortgage credit availability is showing definite signs of easing, credit continues to still be far less available than it was during the housing boom days, according to MBA.
Source: "MBA: It Keeps Getting Easier to Get a Mortgage," HousingWire (May 12, 2015) and "REALTORS® Confidence Index," National Association of REALTORS® (April 2015)

Monday, May 18, 2015

NAR Board Approves Nationwide Listing Data Entry System

The NAR Board of Directors has voted to approve a partnership to create an online system for all listing data posted by real estate brokerages, creating a single back-end entry point for distributing listings to MLSs, brokerage websites, Realtor.com® and other sites chosen by the broker.
The arrangement will bring together NAR and its wholly owned REALTORS Property Resource® (RPR) subsidiary with UpStream RE, LLC, a company formed by a coalition of brokerages, networks and national franchises. The organizations will work together to develop a system based on the RPR® Advanced Multi-list Platform (AMP™) that will allow brokerages to use one application to input data for multiple platforms, including Realtor.com, local MLSs and broker websites.
To learn more about the new data entry system, watch this video on REALTOR.org.
The initiative, approved by the Board on May 16 at the 2015 REALTORS® Legislative Meetings and Trade Expo in Washington, will be funded using NAR operating reserves.
Speaking before the Board voted, RPR CEO Dale Ross said the company has been successful in its mission of providing property information to REALTORS® on the web and via a popular mobile app and needs to act resolutely to keep pace as technology evolves. "The train has left the station," he said, referring to the real estate industry’s desire to develop a unified data-entry tool. "Technology moves fast."
NAR CEO Dale Stinton added that the partnership is a key strategic move for NAR and reflects the organization's tradition of making forward-looking investments in the real estate industry.
In other action, the Board of Directors:
  • Approved funds to help two Texas real estate companies fight a patent troll's effort to extract licensing fees from them for their use of certain search technology on their websites. NAR is part of United for Patent Reform, a broad industry coalition formed to push for changes in patent law that would protect end users of technology from abusive lawsuits.
  • Voted to support efforts by two state REALTOR® associations to advocate for ballot measures to prevent the possible future imposition of sales taxes on real estate transactions.
  • Adopted a Commitment to Excellence, which encourages REALTORS® to strive for excellence in a number of competencies, including the NAR Code of Ethics and understanding real estate the laws and regulations. The Commitment to Excellence also extends to the way REALTORS® interact with one another and with consumers, and to the need to stay current on industry developments.
  • Adopted a plan to support lending, counseling and other programs intended to help so-called "boomerang buyers" reenter the home buying market with confidence and the resources they need to succeed. Boomerang buyers are households that lost their home during the Great Recession and are now considering entering the market again.
  • Created a program to recognize associations doing an exemplary job using resources from NAR's housing opportunity, smart growth, and diversity programs. The new Community Outreach Awards will be presented every other year.

Tuesday, May 12, 2015

Home Prices Are Accelerating

The number of metro areas seeing double-digit price appreciation doubled in the first quarter of this year compared to last quarter, according to the National Association of REALTORS®’ latest quarterly housing report.
The 5 Most Expensive Markets
The following metro areas had the priciest median existing single-family home price in the first quarter:
  1. San Jose, Calif.: $900,000
  2. San Francisco: $748,300
  3. Honolulu: $699,300
  4. Anaheim-Santa Ana, Calif.: $685,700
  5. San Diego: $510,300
The 5 Least Expensive Markets
The following metro areas had the lowest median existing single-family home price in the first quarter:
  1. Youngstown-Warren-Boardman, Ohio: $64,300
  2. Cumberland, Md.: $71,600
  3. Rockford, Ill.: $78,600
  4. Decatur, Ill.: $82,200
  5. Toledo, Ohio: $83,800
Strong demand mixed with tight inventories of homes for-sale continues to push up home prices nationwide. The median existing single-family home price rose in the first quarter in 148 out of the 174 metro areas NAR tracks. Only 25 areas recorded lower median prices compared to a year earlier, while 51 metros saw double-digit increases – a sharp increase from the 24 metro areas in the fourth quarter of 2014.
At the end of 2014, home prices had mostly moderated to healthier, more sustainable levels of growth, but now prices are picking up again, says Lawrence Yun, NAR’s chief economist.
“Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market,” Yun says. “However, stronger demand without increasing supply led to faster price growth in many markets. Sales could soften slightly in some of these markets seeing sharp price appreciation unless housing supply markedly improves and tempers its unhealthy level of growth.”
The median existing single-family home price in the first quarter was $205,200 nationwide, up 7.4 percent from the first quarter of 2014. Meanwhile, total existing-home sales decreased 1.8 percent to a seasonally adjusted annual rate of 4.97 million in that time frame.
Inventories remain tight. By the end of the first quarter, there were 2 million existing homes available for sale, with the average supply during the first quarter at 4.6 months – down from 4.9 months a year ago. Most economists consider a 6- to 7-month supply to be a healthy balance between buyers and sellers.
“Home owners throughout the country have enjoyed accumulating household wealth through the steady rise in home values in the past few years,” Yun says. “However, some home owners are hesitant to move up and sell because they aren’t confident they’ll find another home to buy. This trend – in addition to subpar homebuilding activity – is leading to the ongoing inventory shortages and subsequent run-up in prices seen in many markets.”
Regional Breakdown
Here’s a closer look at how existing-home sales performed across the country in the first quarter:
  • Northeast: Existing-home sales fell 11.2 percent in the first quarter but are 2.2 percent higher than the first quarter of 2014. Median price for single-family homes: $245,000 in the first quarter, up 2.4 percent from a year ago.
  • Midwest: Existing-home sales dropped 2 percent in the first quarter but are 6.3 percent higher than a year ago. Median home price: $156,600, up 8.9 percent from a year ago.
  • South: Existing-home sales dropped slightly by 0.5 percent in the first quarter but are 7.8 percent above the first quarter of 2014. Median home price: $182,300, up 8.2 percent compared to a year earlier.
  • West: Existing-home sales rose 1.5 percent in the first quarter and are 5.4 percent above a year ago. Median home price: $295,500, up 5.8 percent above year ago levels.

Monday, May 11, 2015

87% of Homes Qualify for Down Payment Aid

More prospective home buyers would likely qualify for down payment assistance than they think. Indeed, more than 68 million single-family and condo households – or about 87 percent -- would qualify for a down payment program available in the county where they are located, according to a new study by Down Payment Resource and RealtyTrac in an analysis that included a look at nearly 2,300 down payment programs nationwide.
“Many homebuyers, especially Millennials, haven’t fully investigated their home financing options because they are pessimistic about qualifying for a mortgage,” says Rob Chrane, president and CEO of Down Payment Resource. “Our Homeownership Program Index highlights the wide range and availability of down payment programs available to today’s homebuyers. In fact, 91 percent of the 2,290 programs in our registry have funds available to lend to eligible buyers. Plus, income limits vary depending on the market and programs extend beyond just first-time homebuyers. It’s important for buyers to research down payment programs as part of their loan shopping process.”
Here are some findings from the report:
  • The average amount of down payment assistance across all counties is $11,565.
  • More than half of the available down payment programs are known as Community Seconds, a second mortgage issued by an HFA (or Housing Finance Agencies) or nonprofit organization with a very low or no interest rate. The program could reduce the amount of cash needed to close from $20,000 to $200. Other major down payment programs include first mortgage loans with below-mark interest rates or 100 percent financing or Mortgage Credit Certificates (MCCs), which provide up to $2,000 in annual tax credits for the life of the loan. Neighborhood Stabilization Program loans and grants are also often available that aim to revitalize communities suffering from a large number of foreclosures, high unemployment, or other concerns. Many of these programs can be combined with other programs too, such as VA and FHA home loans.
  • The South leads the nation in the total number of available home buyer down payment programs, followed by the West.
  • The states with the greatest number of down payment programs are located in California, Florida, Texas, Maryland, New York, Georgia, Pennsylvania, Massachusetts, Illinois, and Colorado.
“Down payment assistance tends to suffer from lack of awareness,” says Mark Hughes, COO at First Team Real Estate in the Southern California market. “Guidelines and specifics tend to change with economic swings. Agents typically don’t keep up with the changing requirements and many buyers that depend on their guidance may be unaware of the opportunities.” At First Team, Hughes says they constantly update lending opportunities and requirements and circulate them weekly to keep their buyers aware of the opportunities available.
Where Down Payment Assistance Can Help the Most
The study showed the following 10 counties have the most homes qualifying for down payment assistance:
  1. Wayne County, Mich.: 94.37% or 653,221 homes qualify for down payment assistance there
  2. Dallas County, Texas: 92.81% or 533,518 homes
  3. Harris County, Texas: 92.67% or 961,957 homes
  4. Clark County, Nev.: 92.20% or 558,411 homes
  5. San Diego County, Calif.: 86.18% or 618,050 homes
  6. Maricopa County, Ariz.: 85.79% or 1,052,746 homes
  7. Cook County, Ill.: 84.80% or 1,163,913 homes
  8. Broward County, Fla.: 83.89% or 523,178 homes
  9. Miami-Dade County, Fla.: 82.25% or 589,683 homes
  10. Los Angeles County, Calif.: 78.18% or 1,377,813
For a view of available down payment programs by area, visit downpaymentresource.com.

Thursday, May 7, 2015

Investors Eye Millennial Rising in Housing

As the millennial generation ages, investors see big opportunity in the housing market as these young adults transition into parenthood. In fact, more fund managers reportedly are buying up companies that stand to benefit from this transition, such as home builders and mortgage lenders.
"A generation that’s been stereotyped as urban, single and aghast at the idea of a car-based life in the suburbs is starting to age, prompting fund managers to bet on companies that should benefit if the U.S. birth rate reverses a six-year slump," Reuters reports.
About 4.3 million millennials will turn 30 this year. By 2020, that number will jump to 4.6 million. That means more adults will soon be in their early 30s than at any other time in U.S. history, according to a Wells Fargo analysis of U.S. Census data.
"Look at what a 25-year-old single person spends money on, and look what a 35-year-old with kids spends money on," says Bill Smead, portfolio manager of the $1.1 billion Smead Value fund. "This is a chance to get rich on that transition." Smead’s portfolio holds homebuilder NVR Inc and mortgage lenders such as Wells Fargo & Co and Bank of America Corp.
Millennials already have become the largest segment of home buyers, according to the National Association of REALTORS®. millennials accounted for 32 percent of home sales in 2014, up four percentage points from two years earlier. What’s more, they’re buying up homes in the nearby suburbs rather than in urban cores.
"Especially in the older millennials, we're seeing a move towards more traditional patterns, just on a delayed time frame," says Sarah House, an economist at Wells Fargo.

Wednesday, May 6, 2015

Portland, Oregon - This Week Portland Market Action - May 4, 2015 -



Sharp Rise in Rates Doesn’t Deter Buyers

Mortgage applications for home purchases – viewed as a gauge of future home buying activity – posted only a slight gain at 1 percent last week, but applications are at the highest level since June 2013, the Mortgage Bankers Association reports. In a broader look, mortgage applications for home purchases are 12 percent higher now than a year ago.
However, refinancing applications fell 8.3 percent week-to-week, reaching its lowest level since January. This caused MBA’s seasonally adjusted index reflecting total mortgage applications – for both refinancing and home purchases – to plunge 4.6 percent last week compared to the previous week as interest rates ticked up.
Mortgage news:
MBA reports the 30-year fixed-rate mortgage averaged 3.93 percent last week, up from 3.85 percent the prior week.
"While rates do eventually create downward pressure on purchase demand, it's not nearly as immediate or pronounced as the effect on refinance activity," Matthew Graham of Mortgage News Daily told CNBC. "Additionally, rate spikes tend to motivate fence-sitters, or other prospective buyers, who otherwise might have taken more time shopping around."
What’s more, a lot of the sales activity lately appears to be centered on the higher end of the housing market, which tends to be less rate sensitive, housing analysts say.
Case in point, "the average loan amount for a purchase application reached a record high, a sign that the mix of purchase activity is still skewed toward higher priced homes," says Mike Fratantoni, MBA's chief economist.

Monday, May 4, 2015

8315 N Foss Avenue - For Sale - $289,500 - Three Bedroom - Two 1/2 Bathroom - Finished Basement


$289,500, 3Bd/2Ba Single Family House, 1440 sqft.

LaTasha | Tindell & Company | 503-547-9494
8315 N Foss Ave, Portland, OR 97203
Three Bedroom - Two Bathroom Home - Finished Basement - Fenced Yard & Detached Garage
3Bd/2Ba Single Family House
$289,500
Year Built 1944
Sq Footage 1440 sqft.
Bedrooms 3 Beds
Bathrooms 2 Baths
Floors 2
Parking 1 Off street
Laundry In Unit
Lot Size 4950 Square Feet

DESCRIPTION

Roomy Three Bedroom, two bathroom home. Here you'll enjoy the hardwood floors in the living room master bedroom and the second bedroom, built-in shelving in the hallway closet. Kitchen offers many storage options offers built-in microwave and dishwasher. Back door from kitchen leads to patio and fenced backyard. Detached garage for your storage needs . Downstairs to the finished basement you will find bedroom number three and spacious living and/or family room area, full bathroom. Washer-dryer located in the basement. Detached garage built in 2012, New roof in 2012, Clean Energy Works Oregon Efficiency upgrade including insulating walls and attic and part of basement.

Nearby Parks includes: Columbia City Park, McCoy Park and Trenton City Park.

Close to Home Plate Sliders, Darcy's, East Side Delicatessen, Green Zebra & Mock Crest Grocery and many other restaurants and shops.

School Information (Deemed Reliable but not guaranteed)
Astor Elementary
Roosevelt High School

Property is occupied with tenants. Tenants lease expires 7-15-2015, showings must be coordinated in advance. Preferably two days notice. Current Rent: $1595 - Please contact LaTasha at 503-547-9494, to schedule a time to view the home. Please email buyer's pre approval letter to latasha@tindellandcompany.com. Pre-Approval letter required prior to showing. - Pocket listing - not marketed on RMLS - BAC :2.5% of purchase price.

LaTasha Fox - Tindell & Co - Realtor - OR Real Estate#200909159 - Cell Phone: 503-547-9494
Portland
see additional photos below
Unit Features

- Living room- Range / Oven- Refrigerator
- Dishwasher- Microwave- Balcony, Deck, or Patio
- Yard- Fenced yard- Lawn
- Hardwood floor
Community Features

- Off-street parking

ADDITIONAL PHOTOS
























Contact info:
LaTasha
Tindell & Company
503-547-9494
For sale by Agent/Broker

Posted: Apr 2, 2015, 4:44pm EDT

More Renters Are in Financial Trouble

More than one in four renters use at least half of their household income to cover housing and utility costs, according to a new analysis of Census data by Enterprise Community Partners. The number of renters who are constrained financially from growing household expenses has surged 26 percent since 2007, now at 11.25 million.
The Rental Hardship
"It means making really difficult trade-offs," says Angela Boyd, a vice president at Enterprise Community Partners. "There are daily financial dilemmas about making their rent or buying groceries."
Household incomes have not kept pace with rental increases. A recent analysis by the National Association of REALTORS® showed a widening gap between rental costs and household incomes that is widening to unsustainable levels across the country. NAR's analysis showed that over the last five years a typical rent increased 15 percent, while the income of renters grew by only 11 percent.
In some parts of the country, renters are facing even greater hardships from escalating rental costs. In California, Florida, New Jersey, and New York, more than 30 percent of renters are devoting at least half their incomes to housing and utility expenses, according to the Enterprise Community Partners analysis. At least 20 percent of renters in every state in the U.S. – except for Alaska, South Dakota, and Wyoming – are facing similar high costs relative to income, the analysis found.
Other recent studies are showing the hardships renters now face too from escalating costs. The U.S. Department of Housing and Urban Development estimated that 12 million renters and home owners spend at least 50 percent of their income on housing.
Source: "1 in 4 Renters Use Half Their Pay for Housing Costs," The Associated Press (May 3, 2015)

Friday, May 1, 2015

Realtor.com®: 'This Is No Housing Bubble'

Home prices are rising at a more rapid pace than they were just a few months ago, as demand outpaces supply. Existing-home sales surged 9 percent year-over-year in March and home prices were up 8 percent over last year, according to the National Association of REALTORS®. What’s more, with tight inventories plaguing many markets, the median list price in March climbed 11 percent over last year, reaching $220,000, realtor.com® reports.
Existing-home sales report:Home Sales Surge to 18-Month High
With home prices heating up again, could the housing market be heading for another bubble?
“During the peak years of the housing bubble, from 2003 to 2005, the data on supply versus price appreciation looked very similar to what we are seeing now,” writes Jonathan Smoke, realtor.com®’s chief economist, in recent commentary at the site. “But there are key differences, which is why I’m confident that on the national level, this is no bubble.”
Smoke says these home price increases will stick because the market is correcting for severe price declines in the recent past. Prices rose 7 percent and 12 percent in 2012 and 2013, respectively. Median prices have climbed less than 8 percent on a compounded annual basis over the past three years. On the other hand, from 2002 to 2005, median prices rose 10 percent on a compounded annual basis – and had no justification of a bounce from a prior decline, Smoke says.
“On an inflation-adjusted basis, we are 30 percent beneath the peak set in 2005,” Smoke notes. What’s more, “relative to rents or incomes, median home prices are not ‘unhinged’ from long-term averages,” Smoke writes. In 2005, the price-to-rent ratio was 35 percent higher. Currently, the price-to-income ratio is where it was in 2001 and it is about 30 percent below where it was in 2005.
Smoke also notes that during the housing bubble, mortgage financing saw rapid expansion, and flipping activity based on speculative investing soared—neither of which are occurring now.
“Today’s higher prices are only to be expected as the economy improves and first-time buyers gradually return to the market,” Smoke writes. “Eventually, those higher prices should encourage more owners to list their homes and builders to start construction on new housing—which in turn should solve the problem of supply.”
Source: “Home Prices Are Climbing Faster and Faster, but This Is Not a Bubble,” realtor.com® (April 24, 2015)

The Truth about Zillow Zestimates

Do you know how much your home is worth? No, really, do you? Homeowners and buyers across the country often answer this question by turni...